Money connects the entire world. Some might have a lot of money while some may not have a lot of money. Either ways, money is a universal need. Our interaction with money has transformed and evolved over the years. We have various financial institutions in place now, which did not exist earlier. Technology and internet has made money simpler for us. Money is now digital. We can transfer money from one corner of the world to the other with a click of a button. Digital banking has made our lives extremely easy and convenient. But is it the same for everyone?
There are billions of people out there in the world, for whom money is not that simple and convenient. Think about the farmers who grow the food we eat, the cattle ranchers, the fishermen who spend days away from home, the migrant workers and the millions of small businesses that we call the backbone of our economy. Their interaction with money is very limited and rigid due to various reasons like Irregular income, lack of education, lack of awareness, social status, distance and many other factors. All of these factors limit their ability to receive, borrow, save and spend money with ease and convenience. These people are not able to step up the economic ladder due to the lack of information, resources and awareness.
By providing access to financial services, we would help to solve some of the world’s major persistent problems like poverty and inequality.Financial inclusion means all individuals and businesses have access to useful and affordable financial products and services that meet their needs like transactions, savings, formal loans, payments, credit and insurance.Financial literacy refers to a person’s ability to understand financial concepts and the skills to manage his/her finances in the most efficient way. People with high financial literacy are likely to not rely on informal borrowing sources. Whereas, financially illiterate people are more susceptible to abuse and fraud.
We all have heard so many cases of farmers suicides. According to National Crime Records Bureau(2), since 2017, daily wage earners, farmers, the self-employed and the unemployed have died by suicide in larger numbers due to debt repayment and financial burden. Such horrific incidents can be reduced by providing financial education especially to the poor and needy.The Indian government has taken various endeavours to increase financial literacy. For eg. Digital India scheme and Pradhan mantri Jan Dhan Yojna.
Financial education will not only help promote financial inclusion but also broaden the country’s socio-economic growth. This will also enable the banks, insurance companies to improve their customer base and expand into the rural sector. In order to build a more equitable economy, we must all focus our efforts to reach those who are left out and isolated.
Sowmya Sasun